2006  Demonstration  Project
 \3f  I_3K6:   Mancelona,  Michigan

THE SITErThe 189-acre Tar Lake site is located approximately one mile
south of Mancelona Township in Antrim County, Michigan. Between 1882
and 1945, the Antrim Iron Works Company discharged tar waste into a
four-acre depression at the site. The depression, referred to as Tar Lake,
is the source area of contamination for the site. In 1998, EPA began a
time-critical response action, which included excavating and transporting
tar wastes from the depression, installing a poly-liner, and backfilling
the depression with clean soil. The long-term cleanup activities at  the
site included removing remaining contaminated materials  and installing
an on-site biosparge system  that enhances the natural  breakdown of
hazardous materials. The cleanup activities were completed in 2004. The
ground water is currently being monitored by the Michigan Department of
Environmental Quality to ensure the remedy remains protective. Ground
water use is restricted until the contamination decreases  to acceptable
levels. In 2009, an Explanation of Significant Differences is being prepared
to clarify conditions for acceptable non-potable site ground water uses.

THE  OPPORTUNITY: The area is unzoned, is close  to downtown
Mancelona,  and  provides  significant opportunity   for recreational,
commercial, and residential uses to address multiple community needs.
Approximately  19 acres of the property  are currently  used  by two
commercial businesses, and the Mancelona Township uses an eight-acre
area for storage and management of wood and brush wastes. The site
is currently surrounded by low-density residential and light industrial
properties. The future use of the Tar Lake site will take place as part of the
community's consideration of a larger area, referred to as the Mancelona
Community Redevelopment Area.

THE  BARRIERS:  A  non-EPA, private-party  restrictive  covenant
prohibits parts of the site from being used for residential purposes. Stigma
affects public perception of the site, particularly the 45-acre East Tailings
Area (ETA), which has low enough levels of contaminants to qualify for
unrestricted use. Reuse is also hampered by confusion about what future
uses are likely to take place over what areas of the site.

THE  SOLUTION: The Tar Lake  site  was  one of ten  Superfund
Redevelopment cooperative agreements entered into in 1999 to provide
local  communities with the  opportunity to consider the  reasonably
anticipated future land use of sites. In 2005, in an ongoing effort to continue
                                     Barriers:
                                     Private-party restrictive covenant
                                     preventing residential use on
                                     EPA-unrestricted areas of the site;
                                     stigma affecting both restricted and
                                     unrestricted use parcels within the
                                     site's boundary

                                     Solution:
                                     Implement EPA restrictive
                                     covenant to allow for appropriate
                                     uses; issue a Ready for Reuse
                                     (RfR) determination to address
                                     stigma
                                     Before:
                                     Cleaned up former industrial
                                     site with beautiful views next to
                                     commercial and residential areas

                                     After:
                                     Future mixed use development
                                     complete with recreational
                                     opportunities and commercial
                                     development
            urmea btates
            Environmental Protection
            Agency
Superfund Redevelopment Initiative
                                                                                  updated August 2009

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supporting communities interested in the protective future use of sites, Region 5 provided additional assistance
in the form of in-kind services to determine whether the remedy is protective of the future use envisioned by the
stakeholders. The current reuse plan includes recreational uses such as open space and trails in the western and
southern portion of the  site, a commercial district along the western border, and an alternative energy project to
be located on the ETA property and adjacent lands.

On November 21, 2005 EPA deleted the 45-acre ETA property from National Priorities List (NPL) to lessen the
stigma associated with the area, reducing the site size from 234 acres to 189 acres. In a further attempt to combat
stigma, EPA is writing a Ready for Reuse (RfR) determination for approximately 73 acres of the site and the 45-
acre ETA area. The RfR determination is an environmental status report that will provide potential users of a site
with clear information about the status, limitations and, restrictions on use of the property. This information will
help the potential users to decide whether a proposed reuse is appropriate.

With a community-based redevelopment vision in mind, EPA, Michigan Department of Environmental Quality
(MDEQ), and Community Resource Development Inc. of Mancelona, Michigan are working together to  draft
property-specific restrictive covenants to reduce the potential for exposure to on-site contaminants and to allow
uses  for which  the  remedy is protective. The restrictive covenants  will allow for non-residential uses  with
specific restrictions on ground water use and types of construction activities. Once the Explanation of Significant
Differences identifying acceptable uses of ground water at the site is completed, the draft restrictive covenant will
be updated and formalized.

THE  SITE  NOW:  The Redevelopment Plan will give stakeholders a  clear reuse vision for the site, the new
restrictive covenants and environmental protection easement have been drafted and will soon be implemented, and
stigma will lessen due to the RfR determination and deletion of the uncontaminated area. With these barriers being
addressed, the redevelopment of the site has begun and will continue to move forward. A residential developer
is already interested in constructing log homes on the deleted, uncontaminated area, and Mancelona Renewable
Resources (MRR) has proposed a $140 million biomass alternative energy project on 115 acres of the site. EPA,
MDEQ, and MRR are working together to complete the remedial action  on the property and move forward with
this new industry at the  site. Work plans to address remaining contamination are expected  to be completed by the
spring of 2010. Mancelona lost a major employer in 2008 and redevelopment of the site is expected to boost the
local economy by bringing needed jobs back to the community.

FOR  MORE INFORMATION, CONTACT: Karen Cibulskis, Region 5 Remedial Project Manager, at (312)
886-1843 or cibulskis.karen@epa.gov; or Tom Bloom, Region 5 Superfund Redevelopment Coordinator, at (312)
886-1967 orbloom.thomas@epa.gov.
            United States
            Environmental Protection
            Agency
Superfund  Redevelopment Initiative
                                                                                     updated August 2009

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